New Jersey’s corporate tax code is littered with loopholes, special breaks and preferential treatment for large and well-connected corporations. This broken system caused the state to lose billions of dollars over the past decade – billions that could be better used to help create a prosperous state with a strong economy and thriving communities in the coming decades, according to a report released today by New Jersey Policy Perspective (NJPP).

Three key reforms proposed in NJPP’s report could raise as much as $450 million in new annual revenue to spur investments in services that all businesses need to thrive, while an additional set of reforms would help curb the long-term erosion of corporate tax revenues in the state.

Specifically, NJPP recommends:

• Closing corporate tax loopholes by expanding combined reporting (which could raise up to $290 million a year)
• Reversing the recent tax cut for large S-corporations and updating the tax on LLCs (which could raise an estimated $41 million a year)
• Adopt a “throwback rule” for so-called “nowhere sales” by multistate businesses (which could raise an estimated $127 million a year)
• Reining in corporate subsidy programs (this would not immediately raise or recoup revenue but would help put New Jersey on a stronger footing in the future while making for smarter economic-development overall)